Massive change coming to Chemist Warehouse

Australia’s largest pharmacy retailer has announced a new payment method to avoid high surcharges.

Chemist Warehouse is introducing QR codes at checkout so customers can make direct payments from their bank account, without associated credit card fees.

Known as Pay by Bank, all customers need their mobile phone.

They simply take a photo of the displayed QR code on the payment terminal and authorize the payment by tapping a button on their phone.

The money will then be transferred immediately.

There is no need to create an account or use any other app.

Other customers can still pay with debit card, cash, their phone or Apple Watch.

The QR codes will be rolled out in stores and online from early next year.

The new system won’t save shoppers money, but it could potentially save Chemist Warehouse millions.

The pharmacy chain pays $15 million in payment fees each year and does not pass these costs on to customers.

“Because we are a discounter and operate with low margins, these transaction costs represent a large portion of our potential profits,” said Chairman Jack Gance. The Australian Financial Review.

‘So from our point of view it is important that we have a competitive, low-cost payment system. “That means we can provide better service and a better price for consumers,” he said.

Consumer benefits from QR code payments are “significant”, according to RMIT senior finance lecturer Dr My Nguyen.

“For retailers like Chemist Warehouse, they can significantly reduce transaction costs, which can be as low as 1.5 percent for card payments,” he shared. Seven news.

“These savings could potentially be passed on to consumers in the form of lower prices.”

Chemist Warehouse will join other companies in Australia, including Harris Farm Markets, Baby Bunting, Vodafone, Muji, L’Occitane and MJ Bale, in offering QR code payment.

QR codes are widely used for payments in Asia, including India, China and Thailand.